What form of indirect financial compensation includes benefits like health insurance, retirement plans, paid sick leaves, and company cars?
ABase Pay
BFringe Benefits
CIncentive Pay
DMerit Pay
Explanation
• Fringe Benefits (or indirect compensation) encompass non-wage health, retirement, protection, and lifestyle benefits provided to employees.
• Base Pay is fixed hourly/monthly wages.
• Incentive Pay (direct variable compensation) links earnings directly to individual or group performance targets (e.g., commissions, bonuses).
Exam Relevance
- Topic: Compensation & Benefits
- Subtopic: Types of Compensation

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